Legal Obligations for Selling Online to Consumers: A Comprehensive Guide, Slides of Commercial Law

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Selling via a website

An overview of the key rules if you sell online to consumers

Selling online to consumers

Do you sell products or services to consumers through a website?

If you do, no matter how big or small your site, you must meet certain legal obligationsThese rules apply whether you are a large established company or just starting out

The obligations include…

1. General requirements under consumer law
2. Distance selling rules
3. eCommerce regulations
4. Data protection
5. Corporate compliance

General requirements of

consumer law

Under consumer law:

• Products or services for sale must be of a certain standard
• What you say about them must be true
• You must treat consumers fairly

In Ireland, these general requirements are contained in the Sale of Goods and Supply of Services Act and the Consumer Protection Act

Distance selling

Specific rules also apply to "distance selling”

This is where you take orders remotely from consumers (rather than face-to-face in a shop, office, market etc)

Distance selling includes sales via your website, email, phone or fax

EU's distance selling rules

The distance selling regulations:

• Apply to business-to-consumer transactions (but not business-to-business)
• Specify certain information you must give consumers before the contract is enforceable
• Allow consumers to cancel orders within a specific period, and require you to inform them how they can do this

In a nutshell…

…these rules give consumers additional

protection on top of general consumer

law

Your customers do not need to be given a physical agreement on paper to have a distance contract with you

Information requirements

Your ordering and delivery process must give visitors key information about:

• Your business
• Their order
• The delivery costs involved
• How to cancel

The cooling off period

In a physical shop … consumers don’t get an automatic “cooling off” period after buying goods/services

In online sales … a cooling off period for consumers is a major requirement

The cooling off period

• During the cooling off period your customers can cancel their orders – without a reason
• You must give them a "cooling off" period of at least seven working days
• You also have obligations in situations where ordered goods/services are unavailable

Some goods and services are

exempt

The cooling off period does not apply to:

• Customised products (e.g. T-shirt with customer’s personal slogan on it)
• Perishable goods
• Accommodation (hotels, guesthouses etc) for specific dates

EU’s eCommerce regulations

Under eCommerce regulations you must give further specific information to customers

Some goods and services are excluded from the distance selling regulations , but the eCommerce regulations may still apply

For information requirements, see guides on NCA.ie

Data Protection Act

Your site will need a privacy statement if you collect personal data such as…

• In order forms, feedback forms etc
• Using cookies or other tracking
• Users’ IP or email addresses

See Data Protection Commissioner’s site for details

Spam and unsolicited calls

Your staff have legal responsibilities in terms of “spam” – sending emails, text messages or direct marketing phone calls to people who:

• Are not already your customers or
• Have not consented to be contacted by you in this way

Maximum penalties for spam

• €50,000 for an individual
• €250,000 or 10% of turnover for a body corporate

Corporate compliance

Under Office of Director of Corporate Enforcement rules, limited companies must give certain information on websites and in order forms (including ones sent by email):

• Your company name
• Company registration number
• Registered office

Company registration details

Many websites give "footer" links at the bottom of their pages to a "Legal Information" or "Company Registration" type page with this corporate information

You don’t need to meet these requirements if you are a sole trader

But it is still good practice to reassure potential customers about your business status

Checklist for your online shop

Check whether your website meets the

following five requirements…

1. Does it provide

key information

before and during

the ordering

process, such as a

geographical

address?

2. Does it give

customers the

option to cancel an

order - and

information on how

to do this?

3. Does it meet data protection

requirements about the personal data

you collect, how you use/store it?

Do your staff know the dangers of

sending spam?

4. Does your site have

a privacy statement?

5. Does it display company

registration details (if you are a

limited company)